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Speaker 1: We might be seeing the emergence of a new Murdoch

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Speaker 1: type media mogul family. The names you need to know

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Speaker 1: are Larry Allison of Oracle fame and his son David.

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Speaker 1: They're orchestrating a huge media consolidation controlling everything from paramount

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Speaker 1: cn CNN now TikTok Sam Dickey from Fisher Funds is

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Speaker 1: with us on this a Sam.

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Speaker 2: Good ending here. So what are they up to? Well,

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Speaker 2: Larry certainly isn't slowing down today age eighty one, so

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Speaker 2: him and a son, David are attempting to bring a

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Speaker 2: bring together three things, so massive AI compute power via

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Speaker 2: Larry Larry's Oracle, cloud content via the as you said,

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Speaker 2: David Skydoun's paramount and potential social distribution via owning the

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Speaker 2: US arm of TikTok So first on the cloud compute side,

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Speaker 2: which will be key in modern media to enable AI

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Speaker 2: driven content creation and train recommendation engines. Oracle has kind

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Speaker 2: of always been the poor fourth cousin behind Amazon, Microsoft

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Speaker 2: and Google, but he didn't eye popping deal recently with

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Speaker 2: open Ai. You might have seen it. Saw Oracle stock

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Speaker 2: price shoot up about thirty percent in one day, so

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Speaker 2: that the guts of the deal was Ai signed a

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Speaker 2: contract to pay Oracle three hundred billion dollars over five

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Speaker 2: years to train and inference its AI models. And as

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Speaker 2: an aside here that let's not forget open AI only

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Speaker 2: has fifteen billion dollars in revenue in total today and

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Speaker 2: again it's signed up to pay just one of its suppliers, Oracle,

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Speaker 2: three hundred billion dollars. But let's ignore how frothy that

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Speaker 2: is for a minute. And second, on the content side,

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Speaker 2: they control Paramount, sky Dance and a rumored to be

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Speaker 2: making a bid for Warner Brothers, so if all that

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Speaker 2: comes together, they will control HBO, Paramount CBSCNN Showtime, and

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Speaker 2: two of the five classic old school movie studios. And finally,

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Speaker 2: on the New World distribution side, Oracle is leading a

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Speaker 2: consort consortium to buy eighty percent of tiktoks Us operations

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Speaker 2: for what is pretty much a sweetheart deal of fourteen

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Speaker 2: billion dollars, so one heck of a footprint.

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Speaker 1: Okay, do you think they can pull this off?

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Speaker 2: They are in the box seat, so there's a few

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Speaker 2: pretty obvious things there. So it doesn't hurt that Larry

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Speaker 2: Flirted would being the richest man on the planet. Briefly

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Speaker 2: a couple of weeks ago after that blowout deal with

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Speaker 2: open Ai was announced, and he is exceptionally tight with

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Speaker 2: President Trump. So he's headlining the project Stargate that you

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Speaker 2: and I talked about earlier in the year, which is

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Speaker 2: a half a trillion dollar public private USAI infrastructure project.

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Speaker 2: So and then of course he has a majority ownership

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Speaker 2: in Oracle and in Paramount sky Dance. Pluses, clout and

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Speaker 2: connections place them as the front runner to own TikTok.

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Speaker 2: So I think they're in good shape.

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Speaker 1: Okay, Now is this what we want though? I mean,

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Speaker 1: do we want to see this kind of media consolidation?

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Speaker 1: What does it mean for investors?

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Speaker 2: Well, I think ethically and from a democracy point of view,

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Speaker 2: there's obviously a lot of questions from a market point

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Speaker 2: of view. Like you said that, this very broad media

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Speaker 2: consolidation play is probably the most far reaching in a

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Speaker 2: long time. And the only deal in the last thirty

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Speaker 2: years that was this ambitious was the infamous Aol Time

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Speaker 2: Warner deal in the year two thousand, just before the

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Speaker 2: dot com bust. So, like this one, it was an

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Speaker 2: attempt to remember that word convergence we used to talk

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Speaker 2: about back in the day, it was an attempt to

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Speaker 2: merge New Age distribution via America Online AOL, being the

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Speaker 2: dominant Internet service provider. ISP is a blast from the

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Speaker 2: past at the time with content, But that one hundred

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Speaker 2: and eighty billion dollar deal failed spectacularly and destroyed a

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Speaker 2: ton of capital. So the current deal is as ambitious

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Speaker 2: and far reaching and has some of those frothy signs

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Speaker 2: of that one in two thousand, like the Oracle Open

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Speaker 2: AI deal today. However, if it does go ahead and

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Speaker 2: as successful, if linear TV wasn't dead already, it probably

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Speaker 2: will be. So this behemoth would control roughly half the

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Speaker 2: cable TV market in the US, and even streaming platforms

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Speaker 2: like Disneyplus and Netflix might come under pressure if you

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Speaker 2: and I start to watch all of our favorite friends

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Speaker 2: episodes and movies and CNN news directly on our TikTok apps.

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Speaker 2: Imagine that. But it might even pressure Bohemus. Like Meta

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Speaker 2: is uncertainty over the future of TikTok, and the US

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Speaker 2: had definitely temporarily shifted advertiser spend to Meta. So it

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Speaker 2: really is fascinating stuff. So we need to watch this space.

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Speaker 1: That really is quite interesting. Sam, Thanks so much. Sam,

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Speaker 1: Dickey Officier.

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Speaker 2: Funds for more from Heather Duplessy Allen Drive.

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